Rules and permits
Hot Springs Short-Term Rental Rules: Licenses, Taxes, HSV and HOAs
Hot Springs has licensed short-term rentals since 2021, and the rules depend heavily on zoning. Here is what the city, the state and Hot Springs Village require, with links to check the current versions.
The city license
The City of Hot Springs adopted its short-term residential rental rules in 2021 and has amended them several times since. Every STR inside city limits needs a city short-term rental license.
- Licenses are valid for the calendar year they are issued and must be renewed each year, due January 1.
- A new license requires a Certificate of Occupancy inspection for fire and building code compliance.
- The city's policy page lists the license fee as $50 per bed in the property.
- Maximum occupancy is two people per bedroom, plus two.
- Off-street parking is required under the city code.
- A manager must be on call at all times and able to reach the property within 60 minutes.
- Rentals must follow the city's noise and solid waste ordinances.
Zoning and the residential cap
In residential zones (RR, RS and RN-1 through RN-6), an STR also needs an approved Special Use Permit, and the city caps the total number of residential-zone licenses.
Non-residential zones such as the central business district, commercial and mixed-use districts are outside the cap. So are HPR properties and condos recorded before January 18, 2022.
Taxes on each stay
For stays of 29 nights or fewer, Airbnb collects and remits these taxes on Hot Springs bookings:
| Tax | Rate |
|---|---|
| Arkansas gross receipts tax | 6.5% |
| Arkansas tourism tax | 2% |
| Local city and county sales tax | varies by location |
| Hot Springs Advertising and Promotion tax | 3% |
If you take direct bookings or list on a platform that does not collect these taxes, collecting and filing them is your job. The city lists a contact for STR tax filing questions on its short-term rental page.
Rental income is also reportable for state and federal income tax. A local CPA who works with rental owners can tell you what is deductible.
Hot Springs Village
Hot Springs Village is a private community run by its Property Owners' Association. The POA requires owners who rent a home, short or long term, to register the rental.
Registration is done through the POA member portal or Member Services. The POA's 2026 fee schedule lists the rental registration fee at $50, and a registration runs through June 30 of the following year. Read the POA's residential rules for guest and amenity requirements before you buy.
HOAs and deed restrictions
Many subdivisions and condo associations have covenants that limit or ban short-term rentals, and those can apply even where the city would issue a license.
Read the full covenants and bylaws before closing, and look for minimum lease terms and rules on transient or commercial use. An attorney review is worth the cost if the rental income is the reason you are buying.
Who to call
- City of Hot Springs Planning and Development, 133 Convention Boulevard, 501-321-6905 (STR coordinator, licenses and inspections).
- City STR complaint hotline, 501-621-4665, 24 hours.
- Hot Springs Village POA Member Services for rental registration.
Questions about short-term rentals in Hot Springs?
Call or text 501.365.1001, or send a note and we will get back to you.